New York State proposes new regulations for prediction markets, political event betting may be banned

New York legislative body reactivates regulatory agenda in November 2025, launching a new round of regulatory framework for prediction markets. The proposal, called the “ORACLE Act,” incorporates prediction market regulation provisions into Chapter 48 of the state’s General Business Law, aiming to comprehensively regulate contracts based on event outcomes.

Balancing Restrictions and Openness

The core restrictions of the new regulation include prohibiting contract trading related to political elections and sporting events. At the same time, the bill introduces several protective measures: market participants must meet age requirements, undergo listing reviews, comply with advertising standards, and adhere to anti-manipulation clauses. These provisions aim to prevent market abuse.

While restrictions are imposed on certain categories of events, the regulatory framework remains open to trading of neutral outcomes such as “league wins and losses.” This differentiated approach reflects New York State regulators’ effort to strike a balance between promoting financial innovation and controlling systemic risk — protecting the market while creating space for compliant participants to develop.

Industry insiders believe that New York’s move signifies a further deepening of the United States’ regulation of the crypto derivatives market.